Atlanta, GA Southeast economic capital; diverse economy and strong population growth sustaining housing demand. This report covers current market conditions, the full investment arithmetic on a median-priced rental, and where Atlanta ranks against the 19 other metros tracked here.
Current Market Snapshot
Investment Analysis
With a gross yield of 5.6% and a median price of $345,000, Atlanta sits in the moderate yield range. A typical 2-bedroom property rents for approximately $1,609/month based on HUD Fair Market Rent data.
The affordability index of 88 suggests housing costs exceed what the median household can comfortably afford — watch for affordability-driven demand moderation.
Market Temperature: Hot
With a median DOM of 28 days and approximately 7,200 active listings and fierce competition, Atlanta's market is currently classified as hot. Low inventory is supporting seller leverage; buyers should move decisively on well-priced properties.
The Numbers on a Median-Priced Rental
Buying the median Atlanta home at $345,000 with 20% down takes $79,350 in cash — a $69,000 deposit plus roughly $10,350 in closing costs at 3% — and leaves a $276,000 loan. At 7.0% over 30 years that is $1,836/month in principal and interest.
On those assumptions the median Atlanta rental produces a 2.24% cap rate and falls roughly $1,193 a month short of covering debt service. Cash-on-cash return on the $79,350 invested is -18.05%, and the debt service coverage ratio is 0.35× — below 1.0×, meaning the property cannot service its own debt at 20% down — this is an appreciation play, not a cash flow one. On a rent basis, you need $3,019 a month to break even — 88% above the $1,609 HUD benchmark.
Rate and Rent Sensitivity
Financing cost dominates the outcome. One percentage point on the mortgage rate moves monthly cash flow by more than a 10% swing in rent does:
| Mortgage Rate | P+I Payment | Monthly Cash Flow |
|---|---|---|
| 6.0% | $1,655/mo | -$1,012/mo |
| 7.0% | $1,836/mo | -$1,193/mo |
| 8.0% | $2,025/mo | -$1,382/mo |
| Rent Scenario | Monthly Rent | Cap Rate | Monthly Cash Flow |
|---|---|---|---|
| HUD FMR − 10% | $1,448/mo | 1.76% | -$1,330/mo |
| HUD FMR | $1,609/mo | 2.24% | -$1,193/mo |
| HUD FMR + 10% | $1,769/mo | 2.71% | -$1,058/mo |
How Atlanta Ranks
Among the 20 metros covered here, Atlanta is 7th by gross rental yield and 14th most expensive. Its 5.6% yield sits above the 5.15% median of the set, and its $345,000 price sits below the $390,000 median. The price-to-rent ratio is 17.9× and the price-to-income ratio is 4.7× against a median household income of $74,000.
The metros closest to Atlanta on gross yield are Tampa, FL (5.5%), Jacksonville, FL (5.8%), Las Vegas, NV (5.3%). If Atlanta is on your list, those are the markets whose numbers you should be holding it against — not the national average.
What Has to Be True for Atlanta to Work
A median-priced rental here consumes $14,316 a year in cash. That is not automatically a bad deal: the same loan repays $2,804 of principal in year one, so the true first-year drag is about $11,512. To break even on the cash line alone the property has to appreciate 4.15% a year, against the +3.8% the metro has actually posted over the past twelve months. Hold it five years and amortisation alone builds $16,197 of equity — the question is whether you can fund the shortfall for that long without selling at the wrong moment.
Key Data Points
| Metric | Value |
|---|---|
| Median Sale Price | $345,000 |
| YoY Price Change | +3.8% |
| Median Days on Market | 28 days |
| Active Listings | 7,200 |
| Est. 2BR Fair Market Rent | $1,609/mo |
| Gross Rental Yield | 5.6% |
| Median Household Income | $74,000 |
| Affordability Index | 88 |
| Price-to-Rent Ratio | 17.9× |
| Price-to-Income Ratio | 4.7× |
| Gross Rent Multiplier | 17.9 |
| Cap Rate (45% expense basis) | 2.24% |
| Cash Flow at 20% Down | -$1,193/mo |
| Cash-on-Cash Return | -18.05% |
| Break-Even Rent | $3,019/mo |
Getting Live Data via API
ZipMarketData provides live data for all ZIP codes within the Atlanta, GA metro. Use the /market-stats endpoint with any Atlanta ZIP code for the most current figures — or run the same analysis without writing code in the dashboard.